UBS | The Bank of Japan has now fearlessly (sort of fearlessly) embraced negative interest rates. The negative rates will not be comprehensively applied in Japan, but yet another central bank has broken through zero. Rates are, or have been, negative in Japan, the Euro area, Switzerland, Sweden and Denmark. From an economic point of view what does this mean? There are good and bad aspects to negative interest rates.
Asoka Wöhrmann (Deutsche AWM) | Negative interest rates are new economic territory. However, as yet, there is no sign of a major cash exodus to avoid sub-zero yields.
WASHINGTON | By Michael Gavin at Barclays | In a recently published chapter of the Equity Gilt Study, we presented evidence that trends in population dynamics has been an important driver of the ‘global savings glut’ that has depressed interest rates and boosted asset prices around the world during the past 30 years. We also noted that the world now faces a demographic inflection point, and that demographic support for saving, and by extension asset prices, should fade materially in the decades to come.